PENNSYLVANIA REAL ESTATE INVESTMENT TRUST - FORM 8-K - EX-99.1 - EXHIBIT 99.1

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8-K - 8-K - PENNSYLVANIA REAL ESTATE INVESTMENT TRUST	q315supplemental8k.htm

Exhibit 99.1

Supplemental Financial and Operating Information

Quarter Ended September 30, 2015

www.preit.com

NYSE: PEI

NYSE: PEIPRA, PEIPRB

Pennsylvania Real Estate Investment Trust

Supplemental Financial and Operating Information

September 30, 2015



Table of Contents
Introduction
Company Information	1
Market Capitalization and Capital Resources	2
Operating Results
Statement of Operations - Proportionate Consolidation Method - Quarters Ended September 30, 2015 and September 30, 2014	3
Statement of Operations - Proportionate Consolidation Method - Nine Months Ended September 30, 2015 and September 30, 2014	4
Statement of Net Operating Income - Quarters and Nine Months Ended September 30, 2015 and September 30, 2014	5
Computation of Earnings Per Share	6
Funds From Operations and Funds Available For Distribution - Quarters Ended September 30, 2015 and September 30, 2014	7
Funds From Operations and Funds Available For Distribution - Nine Months Ended September 30, 2015 and September 30, 2014	8
Operating Statistics
Leasing Activity Summary	9
Summarized Sales and Rent Per Square Foot and Occupancy Percentages	10
Mall Occupancy Percentage and Sales Per Square Foot	11
Top Twenty Tenants	12
Lease Expirations	13
Property Information	14
Department Store Lease Expirations	16
Balance Sheet
Condensed Balance Sheet - Proportionate Consolidation Method	18
Investment in Real Estate	19
Capital Expenditures	21
Debt Analysis	22
Debt Schedule	23
Selected Debt Ratios	24
Definitions	25
Forward Looking Statements	26

Pennsylvania Real Estate Investment Trust

Company Information

Background

Pennsylvania Real Estate Investment Trust, founded in 1960 and one of the first equity REITs in the U.S., has a primary investment focus on retail shopping malls. Our portfolio currently consists of a total of 40 retail properties, 36 of which are operating retail properties, three which are development properties, and one which is under redevelopment (The Gallery at Market East). The 36 operating retail properties have a total of 27.1 million square feet and include 30 enclosed malls and six other retail properties. The operating properties are located in 11 states in the eastern half of the United States, primarily in the Mid-Atlantic region. PREIT is headquartered in Philadelphia, Pennsylvania.

If you would like to participate in our quarterly conference call or would like additional information about PREIT, please contact:

Heather Crowell, Vice President of Corporate Communications and Investor Relations

200 South Broad Street

Philadelphia, PA 19102

Telephone: (215) 875-0735

Fax: (215) 546-2504

Email: crowellh@preit.com



Research Coverage

Company	Analyst	Phone Number

Bank of America/Merrill Lynch	Craig Schmidt	(646) 855-3640

Barclays Capital	Ross Smotrich	(212) 526-2306
	Linda Tsai	(212) 526-9937

Citi Investment Research	Michael Bilerman	(212) 816-1383
	Christy McElroy	(212) 816-6981

Discern	David Wiggington	(646) 863-4177

Green Street Advisors	Daniel J. Busch	(949) 640-8780

JP Morgan	Michael W. Mueller	(212) 622-6689

Stifel Nicolaus	Nathan Isbee	(443) 224-1346
	Jennifer Hummert	(443) 224-1288

SunTrust Robinson Humphrey	Ki Bin Kim	(212) 303-4124

NOTE: Press release announcements are available on the Company's website at www.preit.com.

Pennsylvania Real Estate Investment Trust

Market Capitalization and Capital Resources

(in thousands, except per share amounts)



	Quarter Ended September 30,						Year Ended December 31,
	2015			2014			2014			2013
TRADING INFORMATION
Common Shares
High Price per share	$	23.26		$	21.14		$	24.35		$	22.54
Low Price per share	$	18.65		$	18.65		$	16.35		$	14.20
Closing Share Price (at the end of period)	$	19.83		$	19.94		$	23.46		$	18.98
Series A Preferred Shares
High Price per share	$	26.68		$	26.79		$	27.24		$	28.06
Low Price per share	$	26.04		$	25.88		$	25.04		$	24.77
Closing Share Price (at the end of period)	$	26.15		$	26.45		$	26.24		$	25.16
Series B Preferred Shares
High Price per share	$	26.46		$	26.41		$	26.41		$	26.86
Low Price per share	$	25.09		$	25.07		$	23.53		$	23.05
Closing Share Price (at the end of period)	$	25.35		$	25.90		$	25.89		$	23.73
MARKET CAPITALIZATION
EQUITY CAPITALIZATION
Common Shares Outstanding	69,190			68,787			68,801			68,293
OP Units Outstanding	8,343			2,129			2,122			2,129
Total Common Shares and OP Units Outstanding	77,533			70,916			70,923			70,422
Equity Market Capitalization—Common Shares and OP Units	$	1,537,489		$	1,414,074		$	1,663,848		$	1,336,614
Series A Preferred Shares, Nominal Value	115,000			115,000			115,000			115,000
Series B Preferred Shares, Nominal Value	86,250			86,250			86,250			86,250
Total Equity Market Capitalization	$	1,738,739		$	1,615,324		$	1,865,098		$	1,537,864
DEBT CAPITALIZATION
Secured Debt Balance	$	1,593,655		$	1,609,941		$	1,598,257		$	1,701,101
Unsecured Debt Balance ^{(1) (2)}	460,000			130,000			130,000			130,000
Debt Capitalization	2,053,655			1,739,941			1,728,257			1,831,101
TOTAL MARKET CAPITALIZATION	$	3,792,394		$	3,355,265		$	3,593,355		$	3,368,965
Equity Capitalization/Total Market Capitalization	45.8		%	48.1		%	51.9		%	45.6		%
Debt Capitalization/Total Market Capitalization	54.2		%	51.9		%	48.1		%	54.4		%
Unsecured Debt Balance/Total Debt	22.4		%	7.5		%	7.5		%	7.1		%
DISTRIBUTIONS PER COMMON SHARE
Capital Gain Distributions	⁽³⁾			$	0.03		$	0.11		$	—
Non-Dividend Distributions	⁽³⁾			0.17			0.69			0.74
Distributions per common share	$	0.21		$	0.20		$	0.80		$	0.74
Annualized Dividend Yield ⁽⁴⁾	4.2		%	4.0		%	3.4		%	3.9		%
CAPITAL RESOURCES
Cash and Cash Equivalents	$	36,157		$	59,057		$	47,721		$	41,867
Revolving Facility	400,000			400,000			400,000			400,000
Amount Outstanding	(60,000		)	—			—			(130,000		)
Letter of Credit	(7,852		)	(7,135		)	(7,135		)	—
Available Revolving Facility	332,148			392,865			392,865			270,000
Term Loans	400,000			250,000			250,000			—
Amount Borrowed	(400,000		)	(130,000		)	(130,000		)	—
Available Term Loans	—			120,000			120,000			—
TOTAL	$	368,305		$	571,922		$	560,586		$	311,867
Shelf Registration	$	1,000,000		$	568,750		$	1,000,000		$	568,750


⁽¹⁾	The unsecured debt balance includes a Revolving Facility balance of $60,000 as of September 30, 2015 and $130,000 as of December 31, 2013.


⁽²⁾	The unsecured debt balance includes a Term Loan balance of $400,000 as of September 30, 2015 and $130,000 as of December 31, 2014 and September 30, 2014, respectively.


⁽³⁾	Tax status of 2015 dividend payments will be available in January 2016.


⁽⁴⁾	Based on closing share price at the end of the period.

Pennsylvania Real Estate Investment Trust

Statement of Operations - Quarters Ended September 30, 2015 and September 30, 2014

Proportionate Consolidation Method

(in thousands)



	Quarter Ended September 30, 2015									Quarter Ended September 30, 2014
	GAAP			PREIT’s share of unconsolidated partnerships⁽¹⁾			Total (Non GAAP Measure)			GAAP			PREIT’s share of unconsolidated partnerships ⁽¹⁾			Total (Non GAAP Measure)
REVENUE:
Base rent	$	68,378		$	8,228		$	76,606		$	66,908		$	8,764		$	75,672
Expense reimbursements	31,790			3,244			35,034			31,057			3,663			34,720
Percentage rent	866			10			876			542			12			554
Lease termination revenue	1,431			49			1,480			644			—			644
Other real estate revenue	2,355			505			2,860			2,638			324			2,962
Total real estate revenue	104,820			12,036			116,856			101,789			12,763			114,552
Other income	2,216			—			2,216			3,348			—			3,348
Total revenue	107,036			12,036			119,072			105,137			12,763			117,900
EXPENSES:
Operating expenses:
Property operating expenses:
CAM and real estate taxes	(33,004		)	(2,863		)	(35,867		)	(33,092		)	(3,112		)	(36,204		)
Utilities	(5,311		)	(366		)	(5,677		)	(5,520		)	(376		)	(5,896		)
Other property operating expenses	(4,428		)	(701		)	(5,129		)	(4,315		)	(811		)	(5,126		)
Total property operating expenses	(42,743		)	(3,930		)	(46,673		)	(42,927		)	(4,299		)	(47,226		)
Depreciation and amortization	(36,108		)	(3,142		)	(39,250		)	(34,240		)	(2,504		)	(36,744		)
General and administrative expenses	(7,554		)	—			(7,554		)	(8,373		)	—			(8,373		)
Provision for employee separation expense	(136		)	—			(136		)	(85		)	—			(85		)
Acquisition costs and other expenses	(427		)	(21		)	(448		)	(723		)	(20		)	(743		)
Total operating expenses	(86,968		)	(7,093		)	(94,061		)	(86,348		)	(6,823		)	(93,171		)
Interest expense, net⁽²⁾	(19,668		)	(2,558		)	(22,226		)	(20,071		)	(2,734		)	(22,805		)
Impairment of assets	(51,412		)	—			(51,412		)	(2,297		)	—			(2,297		)
Total expenses	(158,048		)	(9,651		)	(167,699		)	(108,716		)	(9,557		)	(118,273		)
Loss before equity in income of partnerships and gain (loss) on sale interest in real estate	(51,012		)	2,385			(48,627		)	(3,579		)	3,206			(373		)
Equity in income of partnerships	2,385			(2,385		)	—			3,206			(3,206		)	—
Gain (loss) on sale of interest in real estate	12,386			—			12,386			(513		)	—			(513		)
Net loss	(36,241		)	—			(36,241		)	(886		)	—			(886		)
Less: net loss attributed to noncontrolling interest	3,901			—			3,901			27			—			27
Net loss attributable to PREIT	(32,340		)	—			(32,340		)	(859		)	—			(859		)
Less: preferred share dividends	(3,962		)	—			(3,962		)	(3,962		)	—			(3,962		)
Net loss attributable to PREIT common shareholders	$	(36,302	)	$	—		$	(36,302	)	$	(4,821	)	$	—		$	(4,821	)


⁽¹⁾	PREIT’s proportionate share of partnership operations is “grossed up” to reflect the Company’s share of the total revenue and expenses of the underlying properties.


⁽²⁾	Net of capitalized interest expense of $758 and $201 for the quarters ended September 30, 2015 and 2014, respectively.

Pennsylvania Real Estate Investment Trust

Statement of Operations - Nine Months Ended September 30, 2015 and September 30, 2014

Proportionate Consolidation Method

(in thousands)



	Nine Months Ended September 30, 2015									Nine Months Ended September 30, 2014
	GAAP			PREIT’s share of unconsolidated partnerships⁽¹⁾			Total (Non GAAP Measure)			GAAP			PREIT’s share of unconsolidated partnerships ⁽¹⁾			Total (Non GAAP Measure)
REVENUE:
Base rent	$	200,069		$	24,990		$	225,059		$	209,896		$	22,550		$	232,446
Expense reimbursements	93,840			10,933			104,773			96,287			9,787			106,074
Percentage rent	1,712			106			1,818			1,455			80			1,535
Lease termination revenue	1,898			64			1,962			898			12			910
Other real estate revenue	6,967			1,199			8,166			8,005			930			8,935
Total real estate revenue	304,486			37,292			341,778			316,541			33,359			349,900
Other income	4,300			—			4,300			4,807			—			4,807
Total revenue	308,786			37,292			346,078			321,348			33,359			354,707
EXPENSES:
Operating expenses:
Property operating expenses:
CAM and real estate taxes	(100,073		)	(10,124		)	(110,197		)	(107,723		)	(7,911		)	(115,634		)
Utilities	(15,419		)	(1,238		)	(16,657		)	(19,571		)	(807		)	(20,378		)
Other operating expenses	(12,416		)	(2,240		)	(14,656		)	(11,713		)	(1,978		)	(13,691		)
Total property operating expenses	(127,908		)	(13,602		)	(141,510		)	(139,007		)	(10,696		)	(149,703		)
Depreciation and amortization	(105,938		)	(9,365		)	(115,303		)	(107,610		)	(6,069		)	(113,679		)
General and administrative expenses	(25,624		)	—			(25,624		)	(26,224		)	—			(26,224		)
Provision for employee separation expense	(136		)	—			(136		)	(4,961		)	—			(4,961		)
Acquisition costs and other expenses	(5,696		)	(62		)	(5,758		)	(3,329		)	(20		)	(3,349		)
Total operating expenses	(265,302		)	(23,029		)	(288,331		)	(281,131		)	(16,785		)	(297,916		)
Interest expense, net⁽²⁾	(60,939		)	(7,764		)	(68,703		)	(61,792		)	(8,182		)	(69,974		)
Impairment of assets	(86,319		)	—			(86,319		)	(19,695		)	—			(19,695		)
Total expenses	(412,560		)	(30,793		)	(443,353		)	(362,618		)	(24,967		)	(387,585		)
Loss before equity in income of partnerships, gain on sale of non operating real estate and gain (loss) on sale of interest in real estate	(103,774		)	6,499			(97,275		)	(41,270		)	8,392			(32,878		)
Equity in income of partnerships	6,499			(6,499		)	—			8,392			(8,392		)	—
Gain on sale of non operating real estate	43			—			43			—			—			—
Gain (loss) on sale of interest in real estate	12,386			—			12,386			(414		)	—			(414		)
Net loss	(84,846		)	—			(84,846		)	(33,292		)	—			(33,292		)
Less: net loss attributed to noncontrolling interest	8,073			—			8,073			1,004			—			1,004
Net loss attributable to PREIT	$	(76,773	)	$	—		$	(76,773	)	$	(32,288	)	$	—		$	(32,288	)
Less: preferred share dividends	(11,886		)	—			(11,886		)	(11,886		)	—			(11,886		)
Net loss attributable to PREIT common shareholders	$	(88,659	)	$	—		$	(88,659	)	$	(44,174	)	$	—		$	(44,174	)


⁽¹⁾	PREIT’s proportionate share of partnership operations is “grossed up” to reflect the Company’s share of the total revenue and expenses of the underlying properties.


⁽²⁾	Net of capitalized interest expense of $1,562 and $494 for the nine months ended September 30, 2015 and 2014, respectively.

Pennsylvania Real Estate Investment Trust

Statement of Net Operating Income ⁽¹⁾

(in thousands)



	Quarter Ended September 30, 2015									Quarter Ended September 30, 2014
SAME STORE RETAIL/NON SAME STORE	Same			Non Same			Total (Non GAAP Measure)			Same			Non Same			Total (Non GAAP Measure)
Real estate revenue:
Base rent	$	69,130		$	7,476		$	76,606		$	67,765		$	7,907		$	75,672
Expense reimbursements	32,385			2,649			35,034			32,167			2,553			34,720
Percentage rent	848			28			876			523			31			554
Lease termination revenue	1,386			94			1,480			252			392			644
Other real estate revenue	2,348			512			2,860			2,502			460			2,962
TOTAL REAL ESTATE REVENUE	106,097			10,759			116,856			103,209			11,343			114,552
Property operating expenses:
CAM and real estate taxes	(32,496		)	(3,371		)	(35,867		)	(32,064		)	(4,140		)	(36,204		)
Utilities	(4,949		)	(728		)	(5,677		)	(5,304		)	(592		)	(5,896		)
Other property operating expenses	(4,117		)	(1,012		)	(5,129		)	(3,773		)	(1,353		)	(5,126		)
TOTAL PREOPERTY OPERATING EXPENSES	(41,562		)	(5,111		)	(46,673		)	(41,141		)	(6,085		)	(47,226		)
NET OPERATING INCOME	$	64,535		$	5,648		$	70,183		$	62,068		$	5,258		$	67,326

	2015			% change 2014 to 2015			2014
Same Store NOI variance
Same Store NOI ⁽²⁾	$	64,535		4.0%			$	62,068
Same Store NOI excluding lease terminations	$	63,149		2.2%			$	61,816



	Nine Months Ended September 30, 2015									Nine Months Ended September 30, 2014
SAME STORE RETAIL/NON SAME STORE	Same			Non Same			Total (Non GAAP Measure)			Same			Non Same			Total (Non GAAP Measure)
Real estate revenue:
Base rent	$	204,142		$	20,917		$	225,059		$	201,912		$	30,534		$	232,446
Expense reimbursements	96,763			8,010			104,773			95,835			10,239			106,074
Percentage rent	1,771			47			1,818			1,483			52			1,535
Lease termination revenue	1,804			158			1,962			517			393			910
Other real estate revenue	7,132			1,034			8,166			7,329			1,606			8,935
TOTAL REAL ESTATE REVENUE	311,612			30,166			341,778			307,076			42,824			349,900
Property operating expenses:
CAM and real estate taxes	(98,744		)	(11,453		)	(110,197		)	(99,075		)	(16,559		)	(115,634		)
Utilities	(14,822		)	(1,835		)	(16,657		)	(17,624		)	(2,754		)	(20,378		)
Other property operating expenses	(11,849		)	(2,807		)	(14,656		)	(10,232		)	(3,459		)	(13,691		)
TOTAL PREOPERTY OPERATING EXPENSES	(125,415		)	(16,095		)	(141,510		)	(126,931		)	(22,772		)	(149,703		)
NET OPERATING INCOME	$	186,197		$	14,071		$	200,268		$	180,145		$	20,052		$	200,197

	2015			% change 2014 to 2015			2014
Same Store NOI variance
Same Store NOI ⁽²⁾	$	186,197		3.4%			$	180,145
Same Store NOI excluding lease terminations	$	184,393		2.7%			$	179,628


⁽¹⁾	PREIT's proportionate share of partnership operations is "grossed up" to reflect the Company's share of the total revenue and expenses of the underlying properties.


⁽²⁾	Same Store NOI definition can be found on page 25.

Pennsylvania Real Estate Investment Trust

Computation of Earnings Per Share

(in thousands, except per share amounts)



	Quarter Ended September 30,						Nine Months Ended September 30,
	2015			2014			2015			2014
Net loss	$	(36,241	)	$	(886	)	$	(84,846	)	$	(33,292	)
Noncontrolling interest	3,901			27			8,073			1,004
Dividends on preferred shares	(3,962		)	(3,962		)	(11,886		)	(11,886		)
Dividends on unvested restricted shares	(76		)	(87		)	(240		)	(293		)
Net loss used to calculate loss per share - basic and diluted	$	(36,378	)	$	(4,908	)	$	(88,899	)	$	(44,467	)

Basic and diluted loss per share	$	(0.53	)	$	(0.07	)	$	(1.29	)	$	(0.65	)

Weighted average common shares outstanding	69,173			68,769			69,097			68,669
Weighted average unvested restricted shares	(366		)	(438		)	(387		)	(497		)
Weighted average shares outstanding - basic	68,807			68,331			68,710			68,172
Weighted average effect of common share equivalents ⁽¹⁾	—			—			—			—
Total weighted average shares outstanding - diluted	68,807			68,331			68,710			68,172

⁽¹⁾

The Company had net losses used to calculate earnings per share for all periods presented. Therefore, the effect of common share equivalents of 352 and 672 for the quarters ended September 30, 2015 and 2014, respectively, and 423 and 596 for the nine months ended September 30, 2015 and 2014, respectively, are excluded from the calculation of diluted loss per share because they would be antidilutive.

Pennsylvania Real Estate Investment Trust

Funds From Operations and Funds Available for Distribution

(in thousands, except per share amounts)



	Quarter Ended September 30, 2015									Quarter Ended September 30, 2014
	Consolidated			PREIT’s share of unconsolidated partnerships			Total (Non GAAP Measure)			Consolidated			PREIT’s share of unconsolidated partnerships			Total (Non GAAP Measure)
FUNDS FROM OPERATIONS (FFO)
Real estate revenue	$	104,820		$	12,036		$	116,856		$	101,789		$	12,763		$	114,552
Property operating expenses	(42,743		)	(3,930		)	(46,673		)	(42,927		)	(4,299		)	(47,226		)
NET OPERATING INCOME	62,077			8,106			70,183			58,862			8,464			67,326
General and administrative expenses	(7,554		)	—			(7,554		)	(8,373		)	—			(8,373		)
Provision for employee separation expense	(136		)	—			(136		)	(85		)	—			(85		)
Other income	2,216			—			2,216			3,348			—			3,348
Acquisition costs and other expenses	(427		)	(21		)	(448		)	(723		)	(20		)	(743		)
Interest expense, net	(19,668		)	(2,558		)	(22,226		)	(20,071		)	(2,734		)	(22,805		)
Depreciation on non real estate assets	(378		)	—			(378		)	(363		)	—			(363		)
Preferred share dividends	(3,962		)	—			(3,962		)	(3,962		)	—			(3,962		)
Funds from operations attributable to common shareholders and OP Unit holders	32,168			5,527			37,695			28,633			5,710			34,343
Depreciation on real estate assets	(35,730		)	(3,142		)	(38,872		)	(33,877		)	(2,504		)	(36,381		)
Equity in income of partnerships	2,385			(2,385		)	—			3,206			(3,206		)	—
Impairment of assets	(51,412		)	—			(51,412		)	(2,297		)	—			(2,297		)
Gain (loss) on sale of interest in real estate	12,386			—			12,386			(513		)	—			(513		)
Preferred share dividends	3,962			—			3,962			3,962			—			3,962
Net loss	$	(36,241	)	$	—		$	(36,241	)	$	(886	)	$	—		$	(886	)
Funds from operations attributable to common shareholders and OP Unit holders	$	32,168		$	5,527		$	37,695		$	28,633		$	5,710		$	34,343
Mortgage prepayment penalty and accelerated amortization of financing costs	41			—			41			—			—			—
Acquisition costs	2			—			2			429			—			429
Provision for employee separation expenses	136			—			136			85			—			85
Loss on hedge ineffectiveness	—			—			—			117			—			117
Funds from operations attributable to common shareholders and OP Unit holders, as adjusted	$	32,347		$	5,527		$	37,874		$	29,264		$	5,710		$	34,974
FUNDS AVAILABLE FOR DISTRIBUTION (FAD)
Funds from operations attributable to common shareholders and OP Unit holders, as adjusted	$	32,347		$	5,527		$	37,874		$	29,264		$	5,710		$	34,974
Adjustments:
Straight line rent	(687		)	(119		)	(806		)	(341		)	(3		)	(344		)
Recurring capital expenditures	(6,089		)	(135		)	(6,224		)	(6,195		)	(303		)	(6,498		)
Tenant allowances	(5,495		)	(292		)	(5,787		)	(8,597		)	(405		)	(9,002		)
Capitalized leasing costs	(1,610		)	—			(1,610		)	(1,394		)	—			(1,394		)
Amortization of above- and below-market lease intangibles	(63		)	(47		)	(110		)	(205		)	(52		)	(257		)
FAD	$	18,403		$	4,934		$	23,337		$	12,532		$	4,947		$	17,479
Weighted average number of shares outstanding							68,807									68,331
Weighted average effect of full conversion of OP Units							8,345									2,129
Effect of common share equivalents							352									672
Total weighted average shares outstanding, including OP Units							77,504									71,132
FUNDS FROM OPERATIONS ATTRIBUTABLE TO COMMON SHAREHOLDERS AND OP UNIT HOLDERS							$	0.49								$	0.48
FUNDS FROM OPERATIONS ATTRIBUTABLE TO COMMON SHAREHOLDERS AND OP UNIT HOLDERS AS ADJUSTED							$	0.49								$	0.49
FAD ATTRIBUTABLE TO COMMON SHAREHOLDERS AND OP UNIT HOLDERS							$	0.30								$	0.25
DIVIDEND PER COMMON SHARE							$	0.21								$	0.20

Pennsylvania Real Estate Investment Trust

Funds From Operations and Funds Available for Distribution

(in thousands, except per share amounts)



	Nine Months Ended September 30, 2015										Nine Months Ended September 30, 2014
	Consolidated			PREIT’s share of unconsolidated partnerships			Total (Non GAAP Measure)				Consolidated			PREIT’s share of unconsolidated partnerships			Total (Non GAAP Measure)
FUNDS FROM OPERATIONS (FFO)
Real estate revenue	$	304,486		$	37,292		$	341,778			$	316,541		$	33,359		$	349,900
Operating expenses	(127,908		)	(13,602		)	(141,510		)		(139,007		)	(10,696		)	(149,703		)
NET OPERATING INCOME	176,578			23,690			200,268				177,534			22,663			200,197
General and administrative expenses	(25,624		)	—			(25,624		)		(26,224		)	—			(26,224		)
Provision for employee separation expense	(136		)	—			(136		)		(4,961		)	—			(4,961		)
Other income	4,300			—			4,300				4,807			—			4,807
Acquisition costs and other expenses	(5,696		)	(62		)	(5,758		)		(3,329		)	(20		)	(3,349		)
Interest expense, net	(60,939		)	(7,764		)	(68,703		)		(61,792		)	(8,182		)	(69,974		)
Depreciation on non real estate assets	(1,136		)	—			(1,136		)		(1,174		)	—			(1,174		)
Gain on sale of non operating real estate	43			—			43				—			—			—
Preferred share dividends	(11,886		)	—			(11,886		)		(11,886		)	—			(11,886		)
Funds from operations attributable to common shareholders and OP Unit holders	75,504			15,864			91,368				72,975			14,461			87,436
Depreciation on real estate assets	(104,802		)	(9,365		)	(114,167		)		(106,436		)	(6,069		)	(112,505		)
Equity in income of partnerships	6,499			(6,499		)	—				8,392			(8,392		)	—
Impairment of assets	(86,319		)	—			(86,319		)		(19,695		)	—			(19,695		)
Gain (loss) on sale of interest in real estate	12,386			—			12,386				(414		)	—			(414		)
Dividends on preferred shares	11,886			—			11,886				11,886			—			11,886
Net loss	$	(84,846	)	$	—		$	(84,846	)		$	(33,292	)	$	—		$	(33,292	)
Funds from operations attributable to common shareholders and OP Unit holders	$	75,504		$	15,864		$	91,368			$	72,975		$	14,461		$	87,436
Acquisition costs	3,470			—			3,470				2,514			—			2,514
Provision for employee separation expenses	136			—			136				4,961			—			4,961
Loss on hedge ineffectiveness	512			—			512				1,354			—			1,354
Mortgage prepayment penalty and accelerated amortization of financing costs	1,071			—			1,071				—			—			—
Funds from operations attributable to common shareholders and OP Unit holders, as adjusted	$	80,693		$	15,864		$	96,557			$	81,804		$	14,461		$	96,265
FUNDS AVAILABLE FOR DISTRIBUTION (FAD)
Funds from operations attributable to common shareholders and OP Unit holders, as adjusted	$	80,693		$	15,864		$	96,557			$	81,804		$	14,461		$	96,265
Adjustments:
Straight line rent	(1,427		)	(337		)	(1,764		)		(1,164		)	(43		)	(1,207		)
Recurring capital expenditures	(9,509		)	(338		)	(9,847		)		(9,507		)	(332		)	(9,839		)
Tenant allowances	(16,158		)	(503		)	(16,661		)		(19,755		)	(523		)	(20,278		)
Capitalized leasing costs	(4,837		)	—			(4,837		)		(4,223		)	—			(4,223		)
Amortization of above- and below-market lease intangibles	(206		)	101			(105		)		(896		)	(95		)	(991		)
FAD	$	48,556		$	14,787		$	63,343			$	46,259		$	13,468		$	59,727
Weighted average number of shares outstanding							68,710										68,172
Weighted average effect of full conversion of OP Units							6,320										2,129
Effect of common share equivalents							423										596
Total weighted average shares outstanding, including OP Units							75,453										70,897
FFO ATTRIBUTABLE TO COMMON SHAREHOLDERS AND OP UNIT HOLDERS							$	1.21									$	1.23
FFO ATTRIBUTABLE TO COMMON SHAREHOLDERS AND OP UNIT HOLDERS AS ADJUSTED							$	1.28									$	1.36
FAD ATTRIBUTABLE TO COMMON SHAREHOLDERS AND OP UNIT HOLDERS							$	0.84									$	0.84
DIVIDEND PER COMMON SHARE							$	0.63									$	0.60
PAYOUT RATIOS
Payout ratio of FFO							46.2		%	⁽¹⁾							43.6		%	⁽²⁾
Payout ratio of FFO as adjusted							44.1		%	⁽¹⁾							40.8		%	⁽²⁾
Payout ratio of FAD							76.9		%	⁽¹⁾							70.6		%	⁽²⁾


⁽¹⁾	Twelve months ended September 30, 2015.


⁽²⁾	Twelve months ended September 30, 2014.

Pennsylvania Real Estate Investment Trust

2015 Leasing Activity Summary



			Avg Gross Rent psf				Change in Gross Rent psf				Annualized Tenant Improvements psf⁽²⁾
	Number	GLA	Previous		New⁽¹⁾		Dollar		%		Annualized Tenant Improvements psf⁽²⁾
New Leases - non anchor tenants less than 10k sf: ⁽³⁾
1st Quarter	23	43,481	N/A		$	70.36	$	70.36	N/A		$	5.73
2nd Quarter	44	94,220	N/A		56.36		56.36		N/A		10.57
3rd Quarter	40	73,446	N/A		47.88		47.88		N/A		5.87
Total/Average	107	211,147	N/A		$	56.29	$	56.29	N/A		$	7.94

New Leases - non anchor tenants 10k sf or greater: ⁽³⁾
1st Quarter	1	13,000	N/A		$	22.49	$	22.49	N/A		$	12.64
2nd Quarter	2	23,785	N/A		15.41		15.41		N/A		1.44
3rd Quarter	5	99,332	N/A		13.82		13.82		N/A		14.06
Total/Average	8	136,117	N/A		$	14.93	$	14.93	N/A		$	11.72

Renewals - non anchor tenants less than 10k sf : ⁽⁴⁾
1st Quarter	60	137,227	$	45.25	$	45.95	$	0.70	1.5	%	$	0.18
2nd Quarter	78	255,466	37.64		39.39		1.75		4.6	%	—
3rd Quarter	77	181,961	40.96		43.97		3.01		7.3	%	0.01
Total/Average	215	574,654	$	40.51	$	42.41	$	1.90	4.7	%	$	0.05

Renewals - non anchor tenants 10k sf or greater: ⁽⁴⁾
1st Quarter	1	12,608	$	13.00	$	13.50	$	0.50	3.8	%	$	—
2nd Quarter	9	253,119	23.39		24.38		0.99		4.2	%	—
3rd Quarter	2	26,230	57.73		68.36		10.63		18.4	%	—
Total/Average	12	291,957	$	26.03	$	27.86	$	1.83	7.1	%	$	—

New Leases - Anchor Tenants
1st Quarter	—	—	N/A		$	—	$	—	N/A		$	—
2nd Quarter	1	48,208	N/A		5.23		5.23		N/A		—
3rd Quarter	—	—	N/A		—		—		N/A		—
Total/Average	1	48,208	N/A		$	5.23	$	5.23	N/A		$	—

Renewals - Anchor Tenants ⁽⁴⁾
1st Quarter	—	—	$	—	$	—	$	—	N/A		$	—
2nd Quarter	8	963,256	4.59		4.59		—		—	%	—
3rd Quarter	2	286,293	3.38		3.38		—		—	%	—
Total/Average	10	1,249,549	$	4.31	$	4.31	$	—	—	%	$	—


⁽¹⁾	New rent is the initial amount payable upon rent commencement. In certain cases, a lower rent may be payable until certain conditions in the lease are satisfied.


⁽²⁾	These leasing costs are presented as annualized costs per square foot and are spread uniformly over the initial lease term.


⁽³⁾	This category includes newly constructed and recommissioned space.


⁽⁴⁾	This category includes leases for reconfigured spaces and lease extensions.

Pennsylvania Real Estate Investment Trust

Summarized Sales and Rent Per Square Foot and Occupancy Percentages



	September 30, 2015												September 30, 2014												Change
	% Rolling 12 Mo. NOI		Avg. Comp Sales		Avg. Gross Rent⁽¹⁾⁽²⁾		Occ. Cost		Occupancy				% Rolling 12 Mo. NOI		Avg. Comp Sales		Avg. Gross Rent⁽¹⁾⁽²⁾		Occ. Cost		Occupancy				Avg. Comp Sales		Avg. Gross Rent⁽¹⁾⁽²⁾		Occ. Cost		Occupancy
									Total		Non-Anchor										Total		Non-Anchor								Total		Non-Anchor
									Total		Non-Anchor										Total		Non-Anchor								Total		Non-Anchor
Premier Malls	34.8	%	$	572	$	71.97	13.0	%	97.3	%	96.0	%	33.6	%	$	518	$	68.99	13.7	%	96.8	%	95.2	%	10.4	%	4.3	%	(0.7	)%	0.5	%	0.8	%
Core Growth Malls - Major Markets	28.9	%	$	375	$	45.40	13.2	%	93.3	%	91.9	%	27.9	%	$	349	$	42.90	13.6	%	95.7	%	92.3	%	7.4	%	5.8	%	(0.4	)%	(2.4	)%	(0.4	)%
Core Growth Malls - Market Dominant	17.7	%	$	377	$	44.07	12.4	%	96.6	%	92.5	%	16.5	%	$	350	$	41.19	12.4	%	96.1	%	91.3	%	7.7	%	7.0	%	—	%	0.5	%	1.2	%
Non Core Malls	8.7	%	$	292	$	29.60	10.9	%	91.5	%	87.2	%	8.4	%	$	267	$	28.29	11.4	%	92.3	%	88.1	%	9.4	%	4.6	%	(0.5	)%	(0.8	)%	(0.9	)%
Total Same Store Malls	90.1	%	$	424	$	50.21	12.7	%	94.6	%	92.3	%	86.4	%	$	387	$	47.44	13.2	%	95.4	%	92.1	%	9.6	%	5.8	%	(0.5	)%	(0.8	)%	0.2	%
Non Same Store Redevelopment Mall	2.5	%	N/A		$	62.89	N/A		81.3%		74.8%		N/A		N/A		N/A		N/A		N/A		N/A		N/A		N/A		N/A		N/A		N/A
Total Malls	92.6	%	$	424	$	50.74	12.7	%	94.0	%	91.1	%	86.4	%	$	387	$	47.44	13.2	%	95.4	%	92.1	%	9.6	%	7.0	%	(0.5	)%	(1.4	)%	(1.0	)%
Other Retail Properties	3.8	%	N/A		$	24.54	N/A		94.4	%	93.9	%	3.5	%	N/A		$	18.62	N/A		96.9	%	96.6	%	N/A		31.8	%	N/A		(2.5	)%	(2.7	)%
Total Retail Properties	96.4	%	N/A		$	45.52	N/A		94.0	%	91.5	%	89.9	%	N/A		$	42.76	N/A		95.5	%	92.6	%	N/A		6.5	%	N/A		(1.5	)%	(1.1	)%
Sold Properties⁽³⁾	1.7	%	N/A		N/A		N/A		N/A		N/A		2.6	%	$	267	$	20.52	N/A		94.5	%	87.9	%	N/A		N/A		N/A		N/A		N/A
Other Properties ⁽⁴⁾	1.9	%	N/A		N/A		N/A		N/A		N/A		7.5	%	N/A		N/A		N/A		N/A		N/A		N/A		N/A		N/A		N/A		N/A
Total Portfolio	100.0	%	$	424	$	45.52			94.0	%	91.5	%	100.0	%	$	384	$	41.38			95.5	%	92.3	%	10.4	%	10.0	%			(1.5	)%	(0.8	)%


⁽¹⁾	Average gross rent for malls includes all non-anchor space owned by the Company and leased to tenants that occupy individual spaces of 10,000 square feet or less. Average gross rent for other retail properties includes all non-anchor space owned by the Company regardless of size.


⁽²⁾	Average gross rent for mall tenants greater than 10,000 sf was $19.69 per square foot as of September 30, 2015 and $18.58 per square foot as of September 30, 2014.


⁽³⁾	Sold properties include Springfield Park, Uniontown Mall and Whitehall Mall. Average comp sales information as of September 30, 2014 includes Uniontown Mall.


⁽⁴⁾	Operating metrics for The Gallery at Market East as of September 30, 2015 and 2014, respectively, are excluded because the property is under redevelopment.

Pennsylvania Real Estate Investment Trust

Mall Occupancy Percentage and Sales Per Square Foot



	September 30, 2015						September 30, 2014						Change
	Avg Comp Sales⁽¹⁾⁽²⁾		Total Occ % ⁽²⁾		Non Anchor Occup. % ⁽²⁾		Avg Comp Sales ⁽¹⁾⁽²⁾		Total Occ % ⁽²⁾		Non Anchor Occup. % ⁽²⁾		Avg Comp Sales ⁽¹⁾⁽²⁾		Total Occ % ⁽²⁾		Non Anchor Occup. % ⁽²⁾
Premier Malls
Cherry Hill Mall	$	661	96.2	%	95.4	%	$	627	95.1	%	94.1	%	5.4	%	1.1	%	1.3	%
Willow Grove Park	577		98.8	%	97.6	%	430		96.2	%	92.2	%	34.2	%	2.6	%	5.4	%
Lehigh Valley Mall	569		95.9	%	93.3	%	528		96.8	%	94.7	%	7.8	%	(0.9	)%	(1.4	)%
Woodland Mall	553		98.6	%	98.6	%	524		98.8	%	98.8	%	5.5	%	(0.2	)%	(0.2	)%
Jacksonville Mall	490		97.6	%	95.3	%	454		97.4	%	94.9	%	7.9	%	0.2	%	0.4	%
Dartmouth Mall	428		98.3	%	97.2	%	422		98.5	%	97.6	%	1.4	%	(0.2	)%	(0.4	)%
Premier Malls Subtotal	$	572	97.3	%	96.0	%	$	518	96.8	%	95.2	%	10.4	%	0.5	%	0.8	%
Core Growth Malls - Major Markets
The Mall at Prince Georges	$	460	98.2	%	96.2	%	$	438	99.3	%	98.5	%	5.0	%	(1.1	)%	(2.3	)%
Patrick Henry Mall	420		96.3	%	94.6	%	383		97.0	%	95.7	%	9.7	%	(0.7	)%	(1.1	)%
Springfield Mall	407		95.8	%	95.8	%	387		95.2	%	95.2	%	5.2	%	0.6	%	0.6	%
Valley Mall	397		95.2	%	91.7	%	363		97.6	%	96.0	%	9.4	%	(2.4	)%	(4.3	)%
Francis Scott Key Mall	364		97.8	%	96.6	%	346		97.7	%	96.3	%	5.2	%	0.1	%	0.3	%
Moorestown Mall	356		94.4	%	87.4	%	354		93.1	%	84.8	%	0.6	%	1.3	%	2.6	%
Exton Square Mall	338		78.5	%	82.5	%	299		95.3	%	89.6	%	13.0	%	(16.8	)%	(7.1	)%
Cumberland Mall	333		89.6	%	93.2	%	298		94.3	%	90.5	%	11.7	%	(4.7	)%	2.7	%
Plymouth Meeting Mall	320		94.3	%	91.3	%	318		91.5	%	87.1	%	0.6	%	2.8	%	4.2	%
Beaver Valley Mall	292		95.8	%	90.8	%	269		95.9	%	91.1	%	8.6	%	(0.1	)%	(0.3	)%
Core Growth Malls - Major Markets Subtotal	$	375	93.3	%	91.9	%	$	349	95.7	%	92.3	%	7.4	%	(2.4	)%	(0.4	)%
Core Growth Malls - Market Dominant
Viewmont Mall	$	430	98.3	%	95.7	%	$	382	94.0	%	84.3	%	12.6	%	4.3	%	11.4	%
Capital City Mall	388		97.1	%	94.7	%	366		96.7	%	94.4	%	6.0	%	0.4	%	0.3	%
Wyoming Valley Mall	388		96.0	%	88.7	%	387		95.8	%	87.9	%	0.3	%	0.2	%	0.8	%
Valley View Mall	381		95.1	%	93.4	%	370		95.4	%	93.5	%	3.0	%	(0.3	)%	(0.1	)%
Crossroads Mall	380		95.4	%	89.9	%	330		96.7	%	92.8	%	15.2	%	(1.3	)%	(2.9	)%
Magnolia Mall	375		98.8	%	97.2	%	348		98.4	%	96.3	%	7.8	%	0.4	%	0.9	%
Logan Valley Mall	327		95.4	%	89.0	%	291		95.9	%	90.3	%	12.4	%	(0.5	)%	(1.3	)%
Core Growth Malls - Market Dominant Subtotal	$	377	96.6	%	92.5	%	$	350	96.1	%	91.3	%	7.7	%	0.5	%	1.2	%

Non Core Malls
Washington Crown Center	$	336	95.4	%	91.5	%	$	321	89.4	%	80.4	%	4.7	%	6.0	%	11.1	%
Palmer Park Mall	329		94.6	%	82.9	%	295		96.1	%	87.7	%	11.5	%	(1.5	)%	(4.8	)%
Gadsden Mall	310		95.1	%	88.0	%	286		98.2	%	95.6	%	8.4	%	(3.1	)%	(7.6	)%
Wiregrass Commons Mall	300		90.7	%	86.4	%	263		93.0	%	89.8	%	14.1	%	(2.3	)%	(3.4	)%
New River Valley Mall	282		84.1	%	90.8	%	258		89.3	%	96.0	%	9.3	%	(5.2	)%	(5.2	)%
Lycoming Mall	264		96.8	%	93.8	%	247		97.0	%	94.1	%	6.9	%	(0.2	)%	(0.3	)%
Voorhees Town Center	261		74.6	%	74.3	%	236		75.3	%	75.0	%	10.6	%	(0.7	)%	(0.7	)%
Non Core Malls Subtotal	$	292	91.5	%	87.2	%	$	267	92.3	%	88.1	%	9.4	%	(0.8	)%	(0.9	)%
Total Same Store Malls weighted average	$	424	94.6	%	92.3	%	$	387	95.4	%	92.1	%	9.6	%	(0.8	)%	0.2	%
Non Same Store Redevelopment Mall
Springfield Town Center	N/A		81.3	%	74.8	%	N/A		N/A		N/A		N/A		N/A		N/A
Total Continuing Malls weighted average	$	424	94.0	%	91.1	%	$	387	95.4	%	92.1	%	9.6	%	(1.4	)%	(1.0	)%
Sold Properties	N/A		N/A		N/A		$	267	94.6	%	87.7	%	N/A		N/A		N/A
Total Malls weighted average	$	424	94.0	%	91.1	%	$	384	95.4	%	92.0	%	10.4	%	(1.5	)%	(0.8	)%
Total Malls excluding Voorhees Town Center	$	428	94.3	%	91.6	%	$	387	95.7	%	92.5	%	10.6	%	(1.4	)%	(0.9	)%


⁽¹⁾	Based on reported sales by all comparable non-anchor tenants that lease individual spaces of 10,000 square feet or less and have occupied the space for at least 24 months.


⁽²⁾	Average comp sales and total and non anchor occupancy for The Gallery at Market East as of September 30, 2015 and 2014, respectively, are excluded because the property is under redevelopment.

Pennsylvania Real Estate Investment Trust

Top Twenty Tenants



Tenant	Brands	Total Number of Locations ⁽¹⁾	Percentage of Annualized Gross Rent⁽²⁾
L Brands, Inc.	Bath & Body Works, Henri Bendel, Pink, Victoria's Secret	65	3.7	%
Signet Jewelers Limited	J.B. Robinson Jewelers, Kay Jewelers, LeRoy's, Marks and Morgan Jewelers, Piercing Pagoda, Plumb Gold, Shaw's Jewelers, Silver & Gold Connection, Totally Pagoda, Zale's Jewelers	95	3.2	%
Foot Locker, Inc.	Champs, Foot Locker, Footaction, House of Hoops by Foot Locker, Kids Foot Locker, Lady Foot Locker, Nike Yardline	56	3.2	%
Gap, Inc.	Banana Republic, Gap/Gap Kids/Baby Gap, Old Navy	34	2.6	%
American Eagle Outfitters, Inc.	Aerie, American Eagle Outfitters	33	2.6	%
J.C. Penney Company, Inc.	JC Penney	23	2.5	%
Ascena Retail Group, Inc.	Ann Taylor, Dress Barn, Justice, Lane Bryant, Loft, Maurices	48	1.9	%
Dick's Sporting Goods, Inc.	Dick's Sporting Goods	11	1.7	%
Macy's, Inc.	Bloomingdale's, Macy's	24	1.7	%
Genesco, Inc	Hat Shack, Hat World, Johnston & Murphy, Journey's, Journey's Kidz, Lids, Lids Locker Room, Shi by Journey's, Underground by Journey's	61	1.6	%
Sears Holding Corporation	Kmart, Sears	20	1.5	%
Luxottica Group S.p.A.	Lenscrafters, Pearle Vision, Sunglass Hut/Watch Station	41	1.4	%
Regal Entertainment Group	Regal Cinemas	5	1.3	%
Abercrombie & Fitch Co.	abercrombie, Abercrombie & Fitch, Hollister Co.	17	1.3	%
Forever 21, Inc.	Forever 21	9	1.3	%
Boscov's Department Store	Boscov's	8	1.2	%
Advent CR Holdings, Inc.	Charlotte Russe	18	1.2	%
The Children's Place Retail Stores, Inc.	The Children's Place	27	1.2	%
Shoe Show, Inc.	Shoe Dept/Encore	22	1.1	%
The Finish Line, Inc.	Finish Line	19	1.0	%
Total Top 20 Tenants		636	37.0	%
Total Leases		2,597	100.0	%


⁽¹⁾	Excludes tenants from The Gallery at Market East.


⁽²⁾	Includes PREIT’s proportionate share of tenant gross rent from partnership properties based on PREIT’s ownership percentage in the respective partnerships.

Pennsylvania Real Estate Investment Trust

Lease Expirations as of September 30, 2015

(dollars in thousands except psf amounts)



Non-Anchors ⁽¹⁾
		Gross Leasable Area			Annualized Gross Rent
Lease Expiration Year	Number of Leases Expiring	Expiring GLA ⁽²⁾	Percent of Total		Gross Rent in Expiring Year		PREIT’s Share of Gross Rent in Expiring Year ⁽³⁾		Percent of PREIT’s Total		Average Expiring Gross Rent psf
Holdover	164	440,184	4.1	%	$	16,438	$	15,883	4.6	%	$	37.34
2015	77	195,850	1.8	%	7,584		6,983		2.0	%	38.72
2016	400	1,354,239	12.7	%	50,466		47,167		13.7	%	37.27
2017	400	1,245,072	11.7	%	48,633		44,675		12.9	%	39.06
2018	272	1,218,040	11.4	%	43,446		39,066		11.3	%	35.67
2019	249	1,020,975	9.6	%	37,024		33,804		9.8	%	36.26
2020	172	1,111,747	10.4	%	31,031		26,660		7.7	%	27.91
2021	136	691,160	6.4	%	24,398		21,022		6.1	%	35.30
2022	119	491,778	4.6	%	21,416		19,032		5.5	%	43.55
2023	129	746,101	7.0	%	26,759		24,124		7.0	%	35.87
2024	158	645,762	6.1	%	29,663		27,940		8.1	%	45.93
Thereafter	250	1,510,922	14.2	%	52,499		39,014		11.3	%	34.75
Total/Average	2,526	10,671,830	100.0	%	$	389,357	$	345,370	100.0	%	$	36.48



Anchors ⁽¹⁾
		Gross Leasable Area			Annualized Gross Rent
Lease Expiration Year	Number of Leases Expiring ⁽⁴⁾	Expiring GLA	Percent of Total		Gross Rent in Expiring Year		PREIT’s Share of Gross Rent in Expiring Year ⁽³⁾		Percent of PREIT’s Total		Average Expiring Gross Rent psf
2016	10	990,212	11.9	%	$	3,707	$	3,707	10.5	%	$	3.74
2017	9	1,319,105	15.9	%	4,581		4,229		11.9	%	3.47
2018	9	998,143	12.0	%	4,406		4,406		12.4	%	4.41
2019	16	1,717,860	20.6	%	5,777		5,777		16.3	%	3.36
2020	11	1,319,127	15.8	%	6,401		6,401		18.1	%	4.85
2021	7	789,538	9.5	%	5,040		3,844		10.9	%	6.38
2022	4	521,173	6.3	%	2,647		2,647		7.5	%	5.08
2023	—	—	—	%	—		—		—	%	N/A
2024	—	—	—	%	—		—		—	%	N/A
Thereafter	5	667,754	8.0	%	4,380		4,380		12.4	%	6.56
Total/Average	71	8,322,912	100.0	%	$	36,939	$	35,391	100.0	%	$	4.44


⁽¹⁾	Only includes owned space. Excludes tenants from The Gallery at Market East.


⁽²⁾	Does not include tenants occupying space under license agreements with initial terms of less than one year. The GLA of these tenants is 637,321 square feet.


⁽³⁾	Includes PREIT’s proportionate share of tenant rent from partnership properties based on PREIT’s ownership percentage in the respective partnerships.


⁽⁴⁾	Accounts for all contiguous anchor space as one lease.

Pennsylvania Real Estate Investment Trust

Property Information as of September 30, 2015

(GLA in thousands)



					Landlord Owned Anchors								Anchor Stores Not Owned							Non-anchor occupied
Properties	State	Ownership	Date Acquired	Year Built/ Last Renovated	Nordstrom	Macy’s	JCPenney	Sears	Boscov’s	Bon-Ton	Other(s)	Total	Macy’s	JCPenney	Sears	Boscov’s	Bon-Ton	Other(s)	Total	Large Format	Small Shop	Vacant	Total GLA
Premier Malls
Cherry Hill Mall	NJ	100%	2003	1961/2009	138	—	—	—	—	—	—	138	305	174	—	—	—	—	479	228	429	32	1,306
Dartmouth Mall	MA	100%	1997	1971/2000	—	—	100	108	—	—	—	208	140	—	—	—	—	—	140	142	171	9	670
Jacksonville Mall	NC	100%	2003	1981/2008	—	—	52	117	—	—	73	242	—	—	—	—	—	—	—	113	128	12	495
Lehigh Valley Mall	PA	50%	1973	1977/2007	—	212	—	—	165	—	—	377	—	207	—	—	—	—	207	180	366	39	1,169
Springfield Town Center	VA	100%	2015	1974/2015	—	252	—	—	—	—	—	252	—	209	—	—	—	181	390	266	275	182	1,365
Willow Grove Park	PA	100%	2000-03	1982/2001	40	225	125	—	—	—	—	390	237	—	176	—	—	—	413	87	280	9	1,179
Woodland Mall	MI	100%	2005	1968/1998	—	—	—	—	—	—	—	—	157	255	313	—	—	—	725	167	271	6	1,169
Total Premier Malls					178	689	277	225	165	—	73	1,607	839	845	489	—	—	181	2,354	1,183	1,920	289	7,353
Core Growth Malls - Major Markets
Beaver Valley Mall	PA	100%	2002	1970/1991	—	—	126	191	194	—	—	511	205	—	—	—	—	—	205	207	191	40	1,154
Cumberland Mall	NJ	100%	2005	1973/2003	—	—	—	—	—	—	213	213	—	—	—	155	—	118	273	233	157	70	946
Exton Square Mall	PA	100%	2003	1973/2000	—	—	—	144	178	—	—	322	181	—	96	—	—	—	277	68	245	175	1,087
Francis Scott Key Mall	MD	100%	2003	1978/1991	—	—	101	121	—	—	—	222	139	—	—	—	—	—	139	181	200	13	755
Moorestown Mall	NJ	100%	2003	1963/2008	—	—	—	206	203	—	—	409	200	—	—	—	—	121	321	88	200	41	1,059
Patrick Henry Mall	VA	100%	2003	1988/2005	—	—	85	—	—	—	50	135	140	—	—	—	—	145	285	38	243	16	717
Plymouth Meeting Mall	PA	100%	2003	1966/2009	—	—	—	—	189	—	65	254	215	—	—	—	—	—	215	198	240	42	949
The Mall at Prince Georges	MD	100%	1998	1959/2004	—	196	149	—	—	—	135	480	—	—	—	—	—	—	—	155	265	17	917
Springfield Mall	PA	50%	2005	1974/1997	—	—	—	—	—	—	—	—	192	—	—	—	—	196	388	10	203	9	610
Valley Mall	MD	100%	2003	1974/1999	—	—	157	—	—	123	—	280	120	—	123	—	—	—	243	127	229	32	911
Core Growth Malls - Major Markets Subtotal					—	196	618	662	764	123	463	2,826	1,392	—	219	155	—	580	2,346	1,305	2,173	455	9,105

(continued on next page)

Pennsylvania Real Estate Investment Trust

Property Information as of September 30, 2015 (continued)

(GLA in thousands)



					Landlord Owned Anchors								Anchor Stores Not Owned							Non-anchor occupied
Properties	State	Ownership	Date Acquired	Year Built/ Last Renovated	Nordstrom	Macy’s	JCPenney	Sears	Boscov’s	Bon-Ton	Other(s)	Total	Macy’s	JCPenney	Sears	Boscov’s	Bon-Ton	Other(s)	Total	Large Format	Small Shop	Vacant	Total GLA
Core Growth Malls - Market Dominant
Capital City Mall	PA	100%	2003	1974/2005	—	—	103	101	—	—	—	204	120	—	—	—	—	—	120	35	196	13	568
Crossroads Mall	WV	100%	2003	1981	—	—	90	87	—	—	78	255	—	—	—	—	—	—	—	74	118	22	469
Logan Valley Mall	PA	100%	2003	1960/1997	—	150	146	159	—	—	—	455	—	—	—	—	—	—	—	82	210	36	783
Magnolia Mall	SC	100%	1997	1979/2007	—	—	104	91	—	—	148	343	—	—	—	—	—	—	—	99	169	8	619
Valley View Mall	WI	100%	2003	1980/2001	—	—	96	—	—	—	—	96	100	—	113	—	42	—	255	98	162	18	629
Viewmont Mall	PA	100%	2003	1968/2006	—	—	193	193	—	—	—	386	140	—	—	—	—	—	140	76	158	11	771
Wyoming Valley Mall	PA	100%	2003	1971/2006	—	146	173	118	—	155	—	592	—	—	—	—	—	—	—	97	185	36	910
Core Growth Malls - Market Dominant Subtotal					—	296	905	749	—	155	226	2,331	360	—	113	—	42	—	515	561	1,198	144	4,749
Non Core Malls
Gadsden Mall	AL	100%	2005	1974/1990	—	—	88	112	—	—	101	301	—	—	—	—	—	—	—	96	85	25	507
Lycoming Mall	PA	100%	2003	1978/2007	—	—	62	130	—	60	81	333	120	—	—	—	—	—	120	162	170	22	807
New River Valley Mall	VA	100%	2003	1988/2007	—	—	50	—	—	—	89	139	—	—	—	—	—	—	—	135	116	74	464
Palmer Park Mall	PA	100%	1972/2003	1972/1998	—	—	—	—	192	122	—	314	—	—	—	—	—	—	—	—	119	25	458
Voorhees Town Center	NJ	100%	2003	1970/2007	—	—	—	—	4	—	—	4	224	—	—	173	—	24	421	73	152	78	728
Washington Crown Center	PA	100%	2003	1969/1999	—	—	—	83	—	78	84	245	140	—	—	—	—	—	140	141	122	24	672
Wiregrass Commons Mall	AL	100%	2003	1986/2008	—	—	—	—	—	—	95	95	—	84	—	—	—	248	332	10	170	28	635
Non Core Malls Subtotal					—	—	200	325	196	260	450	1,431	484	84	—	173	—	272	1,013	617	934	276	4,271
Other Retail Properties
Street Level Retail (2 properties)	PA	100%	2014	1910/1960	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	38	24	8	70
Gloucester Premium Outlets	NJ	25%	2013	2015	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	26	260	83	369
Metroplex Shopping Center	PA	50%	1999	2001	—	—	—	—	—	—	67	67	—	—	—	—	—	301	301	354	56	—	778
The Court at Oxford Valley	PA	50%	1997	1996	—	—	—	—	—	—	60	60	—	—	—	—	—	247	247	343	54	1	705
Red Rose Commons	PA	50%	1998	1998	—	—	—	—	—	—	—	—	—	—	—	—	—	200	200	248	15	—	463
Other Retail Properties Subtotal					—	—	—	—	—	—	127	127	—	—	—	—	—	748	748	1,009	409	92	2,385

Portfolio Totals					178	1,181	2,000	1,961	1,125	538	1,339	8,322	3,075	929	821	328	42	1,781	6,976	4,675	6,634	1,256	27,863

Pennsylvania Real Estate Investment Trust

Department Store Lease Expirations as of September 30, 2015



	Department Store Tenants
Properties	Belk	Bon-Ton	Boscov’s	Burlington Coat Factory ⁽¹⁾	Dillard’s	JCPenney	Kohl’s	Lord & Taylor	Macy’s	Nordstrom	Sears	Target
Premier Malls
Cherry Hill Mall	—	—	—	—	—	(2)	—	—	(2)	2025	—	—
Dartmouth Mall	—	—	—	—	—	2019	—	—	(2)	—	2021	—
Jacksonville Mall	2016	—	—	—	—	2020	—	—	—	—	2016	—
Lehigh Valley Mall	—	—	2017	—	—	(2)	—	—	2017	—	—	—
Springfield Town Center	—	—	—	—	—	(2)	—	—	2025	—	—	(2)
Willow Grove Park ⁽³⁾	—	—	—	—	—	2032	—	—	2022, (2)	2022	(2)	—
Woodland Mall	—	—	—	—	—	(2)	(2)	—	(2)	—	(2)	—

Core Growth Malls - Major Markets
Beaver Valley Mall	—	—	2018	—	—	2017	—	—	(2)	—	2016	—
Cumberland Mall	—	—	(2)	2019	—	—	—	—	—	—	—	—
Exton Square Mall ⁽⁴⁾	—	—	2019	—	—	—	—	—	(2)	—	2019, (2)	—
Francis Scott Key Mall	—	—	—	—	—	2021	—	—	(2)	—	2018	—
Moorestown Mall	—	—	2020	—	—	—	—	(2)	(2)	—	2022	—
Patrick Henry Mall	—	—	—	—	(2)	2020	—	—	(2)	—	—	—
Plymouth Meeting Mall	—	—	2021	—	—	—	—	—	(2)	—	—	—
The Mall at Prince Georges	—	—	—	—	—	2021	—	—	2018	—	—	2019
Springfield Mall	—	—	—	—	—	—	—	—	(2)	—	—	(2)
Valley Mall	—	2019	—	—	—	2019	—	—	(2)	—	(2)	—

(continued on next page)

Pennsylvania Real Estate Investment Trust

Department Store Lease Expirations as of September 30, 2015 (continued)



	Department Store Tenants
Properties	Belk	Bon-Ton	Boscov’s	Burlington Coat Factory ⁽¹⁾	Dillard’s	JCPenney	Kohl’s	Lord & Taylor	Macy’s	Nordstrom	Sears	Target
Core Growth Malls - Market Dominant
Capital City Mall	—	—	—	—	—	2020	—	—	(2)	—	2019	—
Crossroads Mall	2019	—	—	—	—	2016	—	—	—	—	2016	—
Logan Valley Mall	—	—	—	—	—	2017	—	—	2020	—	2016	—
Magnolia Mall	2021	—	—	—	—	2017	—	—	—	—	2017	—
Valley View Mall	—	(2)	—	—	—	2020	—	—	(2)	—	(2)	—
Viewmont Mall	—	—	—	—	—	2020	—	—	(2)	—	2020	—
Wyoming Valley Mall	—	2017	—	—	—	2017	—	—	2017	—	2016	—

Non Core Malls
Gadsden Mall	2019	—	—	—	—	2028	—	—	—	—	2019	—
Lycoming Mall	—	2016	—	2019	—	2020	—	—	(2)	—	2018	—
New River Valley Mall	2020	—	—	—	—	2018	—	—	—	—	—	—
Palmer Park Mall	—	2019	2018	—	—	—	—	—	—	—	—	—
Voorhees Town Center	—	—	(2)	—	—	—	—	—	(2)	—	—	—
Washington Crown Center	—	2018	—	—	—	—	—	—	(2)	—	2019	—
Wiregrass Commons Mall	(2)	—	—	2020	(2)	(2)	—	—	—	—	—	—

Other Retail Properties
Street Level Retail (2 Properties)	—	—	—	—	—	—	—	—	—	—	—	—
Gloucester Premium Outlets	—	—	—	—	—	—	—	—	—	—	—	—
Metroplex Shopping Center	—	—	—	—	—	—	—	—	—	—	—	(2)
The Court at Oxford Valley	—	—	—	—	—	—	—	—	—	—	—	—
Red Rose Commons	—	—	—	—	—	—	—	—	—	—	—	—
Total PREIT Owned Department Stores	5	5	6	4	—	18	—	—	6	2	15	1
Total Non-PREIT Owned Department Stores	1	1	2	—	2	5	1	1	18	—	5	3


⁽¹⁾	Total PREIT owned Burlington Coat Factory stores includes one store located at The Gallery at Market East.


⁽²⁾	Department store is not PREIT owned.


⁽³⁾	The property has a Macy’s that is PREIT owned and a Bloomingdale’s that is not PREIT owned.


⁽⁴⁾	The property has a Sears that is PREIT owned and a K-Mart that is not PREIT owned.

Pennsylvania Real Estate Investment Trust

Condensed Balance Sheet

Proportionate Consolidation Method ⁽¹⁾

(in thousands, except per share amounts)



	September 30, 2015									December 31, 2014
	GAAP			Share of Unconsolidated Partnerships			Total (Non GAAP Measure			GAAP			Share of Unconsolidated Partnerships			Total (Non GAAP Measure
ASSETS
Investments in real estate, at cost
Operating properties	$	3,467,158		$	343,236		$	3,810,394		$	3,216,231		$	332,950		$	3,549,181
Construction in progress	131,924			21,703			153,627			60,452			16,578			77,030
Land held for development	8,424			—			8,424			8,721			—			8,721
Total investments in real estate	3,607,506			364,939			3,972,445			3,285,404			349,528			3,634,932
Accumulated depreciation	(1,071,477		)	(99,759		)	(1,171,236		)	(1,061,051		)	(97,786		)	(1,158,837		)
Net investments in real estate	2,536,029			265,180			2,801,209			2,224,353			251,742			2,476,095
Investments in partnerships, at equity	154,588			(154,588		)	—			140,882			(140,882		)	—
Other assets:
Cash and cash equivalents	22,136			14,021			36,157			40,433			7,288			47,721
Rent and other receivables ⁽²⁾	36,750			3,743			40,493			40,566			3,970			44,536
Intangible assets, net	23,372			5,015			28,387			6,452			6,071			12,523
Deferred costs and other assets, net	86,717			11,405			98,122			87,017			7,252			94,269
Assets held for sale	13,627			—			13,627			—			—			—
Total assets	$	2,873,219		$	144,776		$	3,017,995		$	2,539,703		$	135,441		$	2,675,144
LIABILITIES AND EQUITY
Liabilities:
Mortgage loans	$	1,392,270		$	201,385		$	1,593,655		$	1,407,947		$	190,310		$	1,598,257
Term Loans	400,000			—			400,000			130,000			—			130,000
Revolving Facility	60,000			—			60,000			—			—			—
Tenants’ deposits and deferred rent	15,731			2,725			18,456			15,541			4,078			19,619
Distributions in excess of partnership investments	64,238			(64,238		)	—			65,956			(65,956		)	—
Fair value of derivative instruments	6,029			—			6,029			2,490			—			2,490
Liabilities related to assets held for sale	1,895			—			1,895			—			—			—
Other liabilities	89,738			4,904			94,642			73,032			7,009			80,041
Total liabilities	2,029,901			144,776			2,174,677			1,694,966			135,441			1,830,407
Equity:
Total equity	843,318			—			843,318			844,737			—			844,737
Total liabilities and equity	$	2,873,219		$	144,776		$	3,017,995		$	2,539,703		$	135,441		$	2,675,144


⁽¹⁾	Total includes PREIT’s proportionate share of partnership assets and liabilities “grossed up” to reflect the Company’s share of the total assets and liabilities of the underlying properties. The consolidated financial statements, which are presented in accordance with GAAP, reflect only the Company’s equity in these properties.


⁽²⁾	Total includes straight line rent of $27.3 million ($23.8 million consolidated, $3.5 million unconsolidated) as of September 30, 2015 and $27.8 million ($23.7 million consolidated, $4.1 million unconsolidated) as of December 31, 2014.

Pennsylvania Real Estate Investment Trust

Investment in Real Estate ⁽¹⁾

(in thousands)



	September 30, 2015								December 31, 2014
	Operating Properties and Land Held for Development		Construction in Progress		Accumulated Depreciation		Net Real Estate		Operating Properties and Land Held for Development		Construction in Progress		Accumulated Depreciation		Net Real Estate
Consolidated Malls
Beaver Valley Mall	$	74,733	$	—	$	32,899	$	41,834	$	74,120	$	—	$	30,465	$	43,655
Capital City Mall	100,149		8,000		37,017		71,132		99,665		152		34,419		65,398
Cherry Hill Mall	472,965		—		180,936		292,029		470,493		—		163,178		307,315
Crossroads Mall	49,342		196		16,619		32,919		48,872		195		15,098		33,969
Cumberland Mall	70,299		278		19,105		51,472		67,422		375		17,412		50,385
Dartmouth Mall	67,563		—		33,674		33,889		64,544		—		32,540		32,004
Exton Square Mall	158,724		3,584		44,770		117,538		158,622		1		41,473		117,150
Francis Scott Key Mall	90,495		—		31,279		59,216		90,309		1,681		28,480		63,510
Gadsden Mall	37,504		—		7,646		29,858		64,301		—		16,483		47,818
Jacksonville Mall	84,329		—		29,328		55,001		84,173		2		27,148		57,027
Logan Valley Mall	102,058		758		34,253		68,563		100,887		—		32,222		68,665
Lycoming Mall	55,858		—		15,505		40,353		79,240		—		26,547		52,693
Magnolia Mall	90,797		—		39,529		51,268		90,725		—		37,033		53,692
Moorestown Mall	137,657		3,235		43,307		97,585		131,353		2,147		39,061		94,439
New River Valley Mall	51,550		371		23,001		28,920		59,340		—		27,497		31,843
Palmer Park Mall	34,719		—		15,565		19,154		34,717		—		15,003		19,714
Patrick Henry Mall	146,570		—		58,099		88,471		146,434		—		53,642		92,792
Plymouth Meeting Mall	173,485		23		60,038		113,470		169,981		—		54,037		115,944
The Mall at Prince Georges	104,342		—		48,258		56,084		103,738		35		45,879		57,894
Springfield Town Center	417,293		56,129		5,437		467,985		—		—		—		—
Uniontown Mall ⁽²⁾	—		—		—		—		43,751		—		15,973		27,778
Valley Mall	101,242		672		34,512		67,402		100,682		177		32,217		68,642
Valley View Mall	79,044		—		22,396		56,648		78,811		1,032		20,426		59,417
Viewmont Mall	101,129		—		32,547		68,582		98,404		—		29,834		68,570
Voorhees Town Center ⁽³⁾	4,491		—		91		4,400		83,501		589		28,152		55,938
Washington Crown Center	52,052		—		18,138		33,914		51,562		30		16,747		34,845
Willow Grove Park	237,601		—		79,301		158,300		236,236		—		73,260		162,976
Wiregrass Commons Mall	42,226		—		10,321		31,905		56,539		—		16,939		39,600
Woodland Mall	193,815		—		55,729		138,086		192,976		—		51,048		141,928
Wyoming Valley Mall	113,172		—		40,722		72,450		112,074		—		37,980		74,094
Total Consolidated Malls	3,445,204		73,246		1,070,022		2,448,428		3,193,472		6,416		1,060,193		2,139,695
Unconsolidated Malls
The Gallery at Market East	127,760		19,496		18,897		128,359		126,515		8,965		15,245		120,235
Lehigh Valley Mall	46,497		921		24,369		23,049		46,423		418		23,750		23,091
Springfield Mall	57,268		9		17,824		39,453		57,017		9		16,670		40,356
Total Unconsolidated Malls	231,525		20,426		61,090		190,861		229,955		9,392		55,665		183,682
TOTAL MALLS	$	3,676,729	$	93,672	$	1,131,112	$	2,639,289	$	3,423,427	$	15,808	$	1,115,858	$	2,323,377

(continued on next page)

Pennsylvania Real Estate Investment Trust

Investment in Real Estate ⁽¹⁾ (continued)

(in thousands)



	September 30, 2015								December 31, 2014
	Operating Properties and Land Held for Development		Construction in Progress		Accumulated Depreciation		Net Real Estate		Operating Properties and Land Held for Development		Construction in Progress		Accumulated Depreciation		Net Real Estate
Consolidated Other Retail Properties
Monroe Marketplace ⁽⁴⁾	$	1,715	$	939	$	80	$	2,574	$	1,515	$	—	$	60	$	1,455
Pitney Road Plaza ⁽⁵⁾	—		—		—		—		1,017		20		13		1,024
Sunrise Plaza ⁽⁶⁾	—		434		—		434		—		—		—		—
Street Level Retail (2 Properties)	20,239		3,290		1,375		22,154		20,227		—		785		19,442
Total Consolidated Other Retail Properties	21,954		4,663		1,455		25,162		22,759		20		858		21,921
Unconsolidated Other Retail Properties
Gloucester Premium Outlets	23,912		493		151		24,254		3,458		6,401		—		9,859
Metroplex Shopping Center	42,913		—		23,285		19,628		42,919		—		22,125		20,794
The Court at Oxford Valley	27,225		—		9,943		17,282		28,242		—		10,532		17,710
Red Rose Commons	11,421		—		3,185		8,236		13,617		1		5,221		8,397
Springfield Park ⁽⁷⁾	—		—		—		—		8,519		—		2,216		6,303
Total Unconsolidated Other Retail Properties	105,471		493		36,564		69,400		96,755		6,402		40,094		63,063
TOTAL OTHER RETAIL PROPERTIES	$	127,425	$	5,156	$	38,019	$	94,562	$	119,514	$	6,422	$	40,952	$	84,984
Consolidated Properties Under Development
Springhills	$	—	$	19,229	$	—	$	19,229	$	—	$	19,230	$	—	$	19,230
White Clay Point	—		34,786		—		34,786		—		34,786		—		34,786
Total Consolidated Properties Under Development	—		54,015		—		54,015		—		54,016		—		54,016
Unconsolidated Properties Under Development
Pavilion at Market East	6,240		784		2,105		4,919		6,240		784		2,027		4,997
Total Unconsolidated Properties Under Development	6,240		784		2,105		4,919		6,240		784		2,027		4,997
Other Properties
Land held for development - consolidated	8,424		—		—		8,424		8,721		—		—		8,721
Total Other Properties	8,424		—		—		8,424		8,721		—		—		8,721
TOTAL DEVELOPMENT AND OTHER PROPERTIES	$	14,664	$	54,799	$	2,105	$	67,358	$	14,961	$	54,800	$	2,027	$	67,734
TOTAL INVESTMENT IN REAL ESTATE	$	3,818,818	$	153,627	$	1,171,236	$	2,801,209	$	3,557,902	$	77,030	$	1,158,837	$	2,476,095
CONSOLIDATED PROPERTIES	$	3,475,582	$	131,924	$	1,071,477	$	2,536,029	$	3,224,952	$	60,452	$	1,061,051	$	2,224,353
UNCONSOLIDATED PROPERTIES	343,236		21,703		99,759		265,180		332,950		16,578		97,786		251,742
TOTAL INVESTMENT IN REAL ESTATE	$	3,818,818	$	153,627	$	1,171,236	$	2,801,209	$	3,557,902	$	77,030	$	1,158,837	$	2,476,095


⁽¹⁾	Total includes PREIT’s proportionate share of partnership assets and liabilities “grossed up” to reflect the Company’s share of the total assets and liabilities of the underlying properties. The consolidated financial statements, which are presented in accordance with GAAP, reflect only the Company’s equity in these properties.


⁽²⁾	The Company sold its interest in this property in August 2015.


⁽³⁾	The Company sold its interest in this property in October 2015. In connection with the sale, the Company retained one parcel.


⁽⁴⁾	Consists of two parcels remaining after the sale of the property in 2010.


⁽⁵⁾	Consists of one parcel remaining after the sale of the property in 2010. The Company sold the parcel in July 2015.


⁽⁶⁾	Consists of two parcels remaining after the sale of the property in 2010.


⁽⁷⁾	The Company sold its interest in this property in July 2015.

Pennsylvania Real Estate Investment Trust

Capital Expenditures

(in thousands)



	Quarter Ended September 30, 2015						Nine Months Ended September 30, 2015
	Consolidated		Unconsolidated		Total		Consolidated		Unconsolidated		Total
Redevelopment projects with incremental GLA and/or anchor replacement ⁽¹⁾	$	13,772	$	1,426	$	15,198	$	23,464	$	15,105	$	38,569
New development projects	—		3,676		3,676		61		14,544		14,605
Renovation with no incremental GLA	208		—		208		1,538		—		1,538
Tenant allowances	5,495		292		5,787		16,158		503		16,661
Recurring capital expenditures:
CAM expenditures	5,264		135		5,399		8,072		338		8,410
Non-CAM expenditures	825		—		825		1,437		—		1,437
Total recurring capital expenditures	6,089		135		6,224		9,509		338		9,847
Total	$	25,564	$	5,529	$	31,093	$	50,730	$	30,490	$	81,220


⁽¹⁾	Net of any tenant reimbursements, parcel sales, tax credits or other incentives.

Pennsylvania Real Estate Investment Trust

Debt Analysis as of September 30, 2015

(in thousands)



	Outstanding Debt
	Fixed Rate⁽¹⁾			% of Total Indebtedness		Variable Rate			% of Total Indebtedness		Total			% of Total Indebtedness
Consolidated mortgage loans payable	$	1,386,426		67.5	%	$	5,844		0.3	%	$	1,392,270		67.8	%
Unconsolidated mortgage loans payable	181,144			8.8	%	20,241			1.0	%	201,385			9.8	%
Term Loans ⁽²⁾	250,000			12.2	%	150,000			7.3	%	400,000			19.5	%
2013 Revolving Facility	—			—	%	60,000			2.9	%	60,000			2.9	%
TOTAL OUTSTANDING DEBT	$	1,817,570		88.5	%	$	236,085		11.5	%	$	2,053,655		100.0	%
AVERAGE STATED INTEREST RATE	4.44		%			1.76		%			4.13		%


⁽¹⁾	Includes variable rate debt swapped to fixed rate debt.


⁽²⁾	In October 2015, the Company effectively swapped $100.0 million of the variable interest rate term loan to a fixed interest rate of 2.80%.



		Average Debt Balance
		Mortgage Debt			2013 Revolving Facility			Term Loans		TOTAL
Beginning Balance	6/30/2015	$	1,559,385		$	120,000		$	400,000	$	2,079,385
Mortgage loan amortization		(5,834		)	—			—		(5,834		)
Springfield Park mortgage loan assumption		(4,480		)	—			—		(4,480		)
Willow Grove Park mortgage loan repayment		(133,513		)	—			—		(133,513		)
Willow Grove Park mortgage loan financing		170,000			—			—		170,000
Springfield Mall mortgage loan repayment		(30,845		)	—			—		(30,845		)
Springfield Mall mortgage loan financing		32,500			—			—		32,500
Gloucester Premium Outlet construction loan draw		6,442			—			—		6,442
2013 Revolving Facility, net		—			(60,000		)	—		(60,000		)
Ending Balance	9/30/2015	$	1,593,655		$	60,000		$	400,000	$	2,053,655
Weighted Average Balance		$	1,557,814		$	90,000		$	400,000	$	2,047,814



	Debt Maturities⁽¹⁾
Year	Scheduled Amortization		Mortgage Balance at Maturity		2013 Revolving Facility		Term Loans		Total Debt
2015	$	5,953	$	—	$	—	$	—	$	5,953
2016	20,763		219,480		—		—		240,243
2017	20,705		153,283		—		—		173,988
2018	20,710		164,156		60,000		—		244,866
2019	21,480		28,050		—		150,000		199,530
Thereafter	80,050		859,025		—		250,000		1,189,075
	$	169,661	$	1,423,994	$	60,000	$	400,000	$	2,053,655


⁽¹⁾	The weighted average period to mortgage loan maturity is 5.84 years, excluding extension options. Includes 100% of mortgage loan debt from consolidated properties and our share of mortgage loan debt from unconsolidated properties, based on our ownership percentage.



Weighted Average Mortgage Interest Rates
Year	Balance		Interest Rate
2016	$	221,571	5.55	%
2017	153,461		5.46	%
2018	166,520		3.48	%
2019	28,050		4.38	%
Thereafter	1,024,053		4.46	%
Total	$	1,593,655	4.60	%

Pennsylvania Real Estate Investment Trust

Debt Schedule as of September 30, 2015

(in thousands)



	Debt ⁽¹⁾		Interest Rate		Annual Debt Service		Balance at Maturity		Initial Maturity Date	Fully Extended Maturity Date
Fixed Rate Mortgage Loans
Valley Mall	79,695		5.49	%	6,129		78,996		Mar 2016	Mar 2016
Woodland Mall	141,876		5.58	%	10,760		140,484		Apr 2016	Apr 2016
The Mall at Prince Georges	150,000		5.51	%	8,269		150,000		June 2017	June 2017
Francis Scott Key Mall ⁽²⁾	62,625		3.71	%	2,321		62,625		Mar 2018	Mar 2018
Viewmont Mall ⁽²⁾	48,000		3.72	%	1,786		48,000		Mar 2018	Mar 2018
Lycoming Mall ⁽²⁾	33,271		3.72	%	3,001		30,907		Mar 2018	Mar 2018
New River Valley Mall ⁽²⁾⁽³⁾	28,050		4.38	%	1,229		28,050		Jan 2019	Jan 2019
Valley View Mall	29,841		5.95	%	2,290		27,161		July 2020	July 2020
Lehigh Valley Mall	64,849		5.88	%	4,972		58,519		July 2020	July 2020
Red Rose Commons	14,030		5.14	%	978		12,378		July 2021	July 2021
The Court at Oxford Valley	28,738		5.56	%	2,058		25,782		July 2021	July 2021
Capital City Mall	62,505		5.30	%	4,379		54,715		Mar 2022	Mar 2022
Cumberland Mall	48,331		4.40	%	3,433		38,157		Aug 2022	Aug 2022
Cherry Hill Mall	294,624		3.90	%	16,980		251,120		Sept 2022	Sept 2022
Dartmouth Mall	64,150		3.97	%	3,825		53,300		Apr 2023	Apr 2023
Metroplex Shopping Center	41,027		5.00	%	2,818		33,502		Oct 2023	Oct 2023
Wyoming Valley Mall	77,495		5.17	%	5,124		66,747		Dec 2023	Dec 2023
Patrick Henry Mall	95,963		4.35	%	5,748		77,591		July 2025	July 2025
Springfield Mall	32,500		4.45	%	1,964		26,299		Oct 2025	Oct 2025
Willow Grove Park	170,000		3.88	%	9,599		133,754		Oct 2025	Oct 2025
Total Fixed Rate Mortgage Loans	$	1,567,570	4.64	%	$	97,663	$	1,398,087
Variable Rate Mortgage Loans
Pavilion East Associates	$	3,461	3.00	%	$	253	$	3,283	Aug 2017	Aug 2017
Francis Scott Key Mall	5,844		2.80	%	163		5,844		Mar 2018	Mar 2018
Gloucester Premium Outlets	16,780		1.70	%	285		16,780		June 2018	June 2019
Total Variable Rate Mortgage Loans	$	26,085	2.12	%	$	701	$	25,907
Total Mortgage Loans	$	1,593,655	4.60	%	$	98,364	$	1,423,994
CONSOLIDATED MORTGAGE LOANS	$	1,392,270	4.55	%	$	85,036	$	1,247,451
UNCONSOLIDATED MORTGAGE LOANS	201,385		4.97	%	13,328		176,543
2014 5 YEAR TERM LOAN ⁽²⁾	150,000		3.02	%	4,525		150,000		Jan 2019	Jan 2019
2014 7 YEAR TERM LOAN ⁽²⁾	100,000		3.30	%	3,297		100,000		Jan 2021	Jan 2021
2015 5 YEAR TERM LOAN VARIABLE ⁽⁴⁾	150,000		1.80	%	2,696		150,000		June 2020	June 2020
2013 REVOLVING FACILITY	60,000		1.50	%	898		60,000		June 2018	June 2020
Total	$	2,053,655	4.13	%	$	109,780	$	1,883,994
AMORTIZATION OF DEFERRED FINANCING FEES	—		0.14	%	—		—
EFFECTIVE INTEREST RATE	$	2,053,655	4.27	%	$	109,780	$	1,883,994


⁽¹⁾	Includes 100% of debt from consolidated properties and our share of debt from unconsolidated properties, based on our ownership percentage.


⁽²⁾	All or a portion of the loan has been effectively swapped to the fixed interest rate presented.


⁽³⁾	Payments are of interest only until 2017, then principal and interest at a rate to be determined.


⁽⁴⁾	In October 2015, the Company effectively swapped $100.0 million of this loan to a fixed interest rate of 2.80%. The balance of this loan will remain variable.

Pennsylvania Real Estate Investment Trust

Selected Debt Ratios ⁽¹⁾




	September 30, 2015
Consolidated Liabilities to Gross Asset Value	50.17	%
Ratio of Consolidated Liabilities to Gross Asset Value shall not exceed 60%
Secured Indebtedness to Gross Asset Value	36.97	%
Secured indebtedness to Gross Asset Value may not exceed 60%
Adjusted EBITDA to Fixed Charges	1.94
Adjusted EBITDA may not be less than 1.50 to 1.00
Unencumbered Adjusted NOI to Unsecured Interest Expense	7.12
Unencumbered Adjusted NOI to Unsecured Interest Expense may not be less than 1.75 to 1.00
Unencumbered Debt Yield	18.71	%
The ratio of Unencumbered Adjusted NOI to Unsecured Debt may not be less than 11%

⁽¹⁾

The 2013 Revolving Facility agreement dated as of April 17, 2013, as amended, the 2014 Term Loan agreements dated as of January 8, 2014, and the 2015 Term Loan agreement dated June 26, 2015 contain identical affirmative and negative covenants customarily found in such agreements, including requirements that the Company, on a consolidated basis, maintain certain financial ratios. All capitalized terms used on this page have the meanings ascribed to such terms in the 2013 Revolving Facility, 2014 Term Loans, and 2015 Term Loan. In addition to the ratios set forth herein, there are several other ratios set forth in the covenants under the 2013 Revolving Facility, 2014 Term Loans and 2015 Term Loan with which the Company must comply, all of which are described in the Company’s 2014 Annual Report on Form 10-K dated February 23, 2015.

Pennsylvania Real Estate Investment Trust

Definitions

Funds From Operations (FFO)

The National Association of Real Estate Investment Trusts (“NAREIT”) defines Funds From Operations (“FFO”), which is a non-GAAP measure commonly used by REITs, as net income (computed in accordance with GAAP) excluding gains and losses on sales of operating properties; plus real estate depreciation and amortization; and after adjustments for unconsolidated partnerships and joint ventures to reflect funds from operations on the same basis. We compute FFO in accordance with standards established by NAREIT, which may not be comparable to FFO reported by other REITs that do not define the term in accordance with the current NAREIT definition, or that interpret the current NAREIT definition differently than we do. NAREIT’s established guidance provides that excluding impairment write downs of depreciable real estate is consistent with the NAREIT definition.

FFO is a commonly used measure of operating performance and profitability among REITs. We use FFO and FFO per diluted share and unit of limited partnership interest in our operating partnership (“OP Unit”) in measuring our performance against our peers and as one of the performance measures for determining incentive compensation amounts earned under certain of our performance-based executive compensation programs.

FFO does not include gains and losses on sales of operating real estate assets or impairment write downs of depreciable real estate, which are included in the determination of net income in accordance with GAAP. Accordingly, FFO is not a comprehensive measure of our operating cash flows. In addition, since FFO does not include depreciation on real estate assets, FFO may not be a useful performance measure when comparing our operating performance to that of other non-real estate commercial enterprises. We compensate for these limitations by using FFO in conjunction with other GAAP financial performance measures, such as net income and net cash provided by operating activities, and other non-GAAP financial performance measures, such as NOI. FFO does not represent cash generated from operating activities in accordance with GAAP and should not be considered to be an alternative to net income (determined in accordance with GAAP) as an indication of our financial performance or to be an alternative to cash flow from operating activities (determined in accordance with GAAP) as a measure of our liquidity, nor is it indicative of funds available for our cash needs, including our ability to make cash distributions. We believe that net income is the most directly comparable GAAP measurement to FFO.

We also present Funds From Operations, as adjusted, and Funds From Operations per diluted share and OP Unit, as adjusted, which are non-GAAP measures, for the three and nine months ended September 30, 2015 and 2014 to show the effect of mortgage prepayment penalty, accelerated amortization of financing costs, acquisition costs, loss on hedge ineffectiveness and provision for employee separation expense, which had a significant effect on our results of operations, but are not, in our opinion, indicative of our operating performance.

We believe that FFO is helpful to management and investors as a measure of operating performance because it excludes various items included in net income that do not relate to or are not indicative of operating performance, such as gains on sales of operating real estate and depreciation and amortization of real estate, among others. We believe that Funds From Operations, as adjusted, is helpful to management and investors as a measure of operating performance because it makes adjustments to FFO to exclude items that management does not believe are indicative of our operating performance, including but not limited to acquisition costs and loss on hedge ineffectiveness.

Net Operating Income (NOI)

NOI (a non-GAAP measure) is derived from real estate revenue (determined in accordance with generally accepted accounting principles, or GAAP, including lease termination revenue) minus property operating expenses (determined in accordance with GAAP), plus our share of revenue and property operating expense of our partnership investments. It does not represent cash generated from operating activities in accordance with GAAP and should not be considered to be an alternative to net income (determined in accordance with GAAP) as an indication of our financial performance or to be an alternative to cash flow from operating activities (determined in accordance with GAAP) as a measure of our liquidity. It is not indicative of funds available for our cash needs, including our ability to make cash distributions. We believe that NOI is helpful to management and investors as a measure of operating performance because it is an indicator of the return on property investment and provides a method of comparing property performance over time. We believe that net income is the most directly comparable GAAP measurement to NOI.

NOI excludes other income, general and administrative expense, provision for employee separation expenses, interest expense, depreciation and amortization, gain on sale of interest in non operating real estate, gain on sale of interest in real estate, impairment losses and acquisition costs and other expenses.

Same Store NOI

Same Store NOI is calculated using retail properties owned for the full periods presented and excludes properties acquired or disposed of or under redevelopment during the periods presented.

Funds Available for Distribution (FAD)

FAD is a measure of a real estate company’s cash flows generated by operations and capacity to pay dividends. The Company calculates FAD by starting with FFO as adjusted and subtracting (1) straight-line rent, (2) normalized recurring capital expenditures that are capitalized but necessary to maintain our properties, (3) operational tenant allowances, (4) capitalized leasing costs, and (5) amortization of above- and below-market lease intangibles.

We believe that net income is the most directly comparable GAAP measurement to FAD. We believe FAD provides a meaningful indicator of our ability to fund cash needs and to make cash distributions to equity owners. In addition, we believe that to further understand our liquidity, FAD should be compared with our cash flow from operating activities determined in accordance with GAAP, as presented in our consolidated financial statements. The computation of FAD may not be comparable to FAD reported by other REITs or real estate companies and FAD does not represent cash generated from operating activities determined in accordance with GAAP, and should not be considered as an alternative to net income (determined in accordance with GAAP) as an indication of our performance, or as an alternative to net cash flow from operating activities (determined in accordance with GAAP), as a measure of our liquidity.

Pennsylvania Real Estate Investment Trust

Forward Looking Statements

This Quarterly Supplemental and Operating Information contains certain “forward-looking statements” within the meaning of the federal securities laws. Forward-looking statements relate to expectations, beliefs, projections, future plans, strategies, anticipated events, trends and other matters that are not historical facts. These forward-looking statements reflect our current views about future events, achievements or results and are subject to risks, uncertainties and changes in circumstances that might cause future events, achievements or results to differ materially from those expressed or implied by the forward-looking statements. In particular, our business might be materially and adversely affected by uncertainties affecting real estate businesses generally as well as the following, among other factors:


•	our substantial debt and stated value of preferred shares and our high leverage ratio;


•	constraining leverage, unencumbered debt yield, interest and tangible net worth covenants under our Credit Agreements;


•	potential losses on impairment of certain long-lived assets, such as real estate, or of intangible assets, such as goodwill, including such losses that we might be required to record in connection with any dispositions of assets;


•	changes in the retail industry, including consolidation and store closings, particularly among anchor tenants;


•	our ability to sell properties that we seek to dispose of or our ability to obtain estimated sale prices;


•	the effects of online shopping and other uses of technology on our retail tenants;


•	risks relating to development and redevelopment activities;


•	current economic conditions and the state of employment growth and consumer confidence and spending, and the corresponding effects on tenant business performance, prospects, solvency and leasing decisions and on our cash flows, and the value and potential impairment of our properties;


•	our ability to refinance our existing indebtedness when it matures, on favorable terms or at all;


•	our ability to raise capital, including through the issuance of equity or equity-related securities if market conditions are favorable, through joint ventures or other partnerships, through sales of properties or interests in properties, or through other actions;


•	our ability to identify and execute on suitable acquisition opportunities and to integrate acquired properties into our

portfolio;


•	our partnerships and joint ventures with third parties to acquire or develop properties;


•	our short and long-term liquidity position;


•	general economic, financial and political conditions, including credit and capital market conditions, changes in interest rates or unemployment;


•	our ability to maintain and increase property occupancy, sales and rental rates, in light of the relatively high number of leases that have expired or are expiring in the next two years;


•	acts of violence at malls, including our properties, or at other similar spaces, and the potential effect on traffic and

sales;


•	changes to our corporate management team and any resulting modifications to our business strategies;


•	increases in operating costs that cannot be passed on to tenants;


•	concentration of our properties in the Mid-Atlantic region;


•	changes in local market conditions, such as the supply of or demand for retail space, or other competitive factors; and


•	potential dilution from any capital raising transactions or other equity issuances.

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PENNSYLVANIA REAL ESTATE INVESTMENT TRUST Reports